The MPC + MPS must always equal
A. The APC.
B. 0.
C. 1.
D. The slope of the consumption function.
Answer: C
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Based on the figure above, which of the following factors could lead the demand curve to shift rightward from D0 to D1?
A) a fall in expected future U.S. exchange rate B) a fall in the U.S. exchange rate C) a rise in the U.S. interest rate D) a rise in the U.S. exchange rate E) a rise in foreign interest rates
How can a country with a fixed nominal exchange rate, such as Greece, experience a lower real exchange rate?
A) by experiencing higher inflation than its partners B) by experiencing deflation if its partners have low inflation rates C) by limiting the growth of productivity D) by increasing wages at a faster rate than inflation
Refer to the provided graph of a competitive market. If the output level is Q1, then there are efficiency losses indicated by the area
What will be an ideal response?
In Figure 5.1, the demand curve that is perfectly elastic is on graph:
A. A. B. B. C. C. D. D.